Is Analog Devices, Inc. (ADI) Undervalued?
Based on the current stock price of $276.84 and a P/E ratio of 60.58,Analog Devices, Inc. has a PEG ratio of 2.25.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.25, ADI appears to be potentially overvalued relative to its growth rate of 26.95%.
Based on a PEG ratio of 2.13 (adjusted for dividends).
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How we analyzed ADI
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 60.58and dividing it by the annual growth rate of 26.95%.
PEG = 60.58 (P/E) ÷ 26.95 (Growth) = 2.25
Frequently Asked Questions about ADI
What is the current PEG Ratio for Analog Devices, Inc. (ADI)?+
The current PEG Ratio for Analog Devices, Inc. is 2.25. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ADI stock undervalued right now?+
Based on the PEG ratio of 2.25, Analog Devices, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ADI?+
The PEGY ratio for Analog Devices, Inc. is 2.13. This metric accounts for dividend yield (1.43%), providing a more complete valuation picture.